Tesla sues Ontario over canceled electric vehicle rebate

Tesla files lawsuit against Ontario government over electric vehicle rebate program

According to court documents filed in Toronto, Tesla is suing the Ontario government over the cancellation of the electric vehicle incentives in the province.

Premier Doug Ford's government cancelled rebates for electric vehicles on July 11, a week after the province ended its cap-and-trade program.

Tesla, which confirmed it filed a lawsuit with the Ontario Superior Court on Thursday, said in its application for judicial review that the Ministry of Transportation excluded the electric vehicle maker from its transition plan after it scrapped the rebate program. A spokeswoman for Tesla affirmed the claim on Thursday yet would not comment further.

The government's decision left hundreds of customers ineligible for the rebates they expected to receive when they initially pre-ordered their Tesla vehicles.

The Ontario government didn't immediately return a request for comment, but it also declined to comment to Reuters because the issue is already before the court.

The incentives allowed residents to receive rebates of up to about CA$14,000 (about US$11,000) on the purchase of an electric or hydrogen vehicle.

Tesla claims it then received an additional letter from the government which "omitted details on how Tesla Canada customers could obtain rebates under the Transition Plan and made clear that (the Ministry of Transportation) had decided specifically to exclude Tesla Canada alone".

Tesla has called for the application to be heard on "an urgent basis".

It's unclear what Tesla Canada's policy is on refunding deposits to customers who may no longer be able to afford a Model 3 without the rebate, but Global News apparently spoke to one Mississauga man who was able to get his money back.

"This decision has also already inflicted substantial harm on Tesla Canada in the form of lost sales", said the electric vehicle company.

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